Europe’s largest bank is to contact customers to offer them redress after regulators identified ‘unreasonable’ debt collection practices.
The Financial Conduct Authority (FCA) said HSBC had offered to establish a £4m fund to repay 6,700 people hit with unfair legal charges after they fell into arrears between 2003 and 2009.
The City watchdog said the costs were imposed by HSBC-owned HFC Bank and John Lewis Financial Services after customers were referred to the firms’ nominated solicitors.
Law360, Los Angeles (January 12, 2017, 8:09 PM EST) — Investors suing big banks over alleged manipulation of Euribor, the euro interbank offered rate, asked a New York federal court Wednesday to sign off on a $45 million settlement with HSBC Bank PLC.
The proposed deal would provide relief to a class of investors who traded on Euribor products during a nearly seven-year period, and release HSBC from allegations that it unlawfully tampered with the right in violation of antitrust laws and commodities laws.
HSBC has said that its affiliate’s alleged Euribor manipulation was limited to..
The Office of the Comptroller of the Currency terminated its mortgage servicing-related order against HSBC Bank USA, lifting restrictions placed on the bank over its failure to comply with requirements of the Independent Foreclosure Review. This termination marks the last OCC-regulated mortgage service to have its order terminated.
The OCC originally issued the order in April 2011 and amended it in February 2013, with the most recent amendment in June 2015 forcing business restrictions on HSBC.
When Dan Strauss received a letter from HSBC stating that it would be closing his accounts after more than 20 years as a customer, he thought there had been some kind of mistake.
The voice over artist, who is 53 and lives in Cambridge, holds several accounts with the bank, including his main current and two savings accounts.
A few weeks ago he received a letter from the bank that read: “At HSBC we carry out regular reviews of the accounts, products and services we offer our customers.
“We recently reviewed your accounts and I am sorry to tell you that we are no longer able to provide you with banking products and services.”
He was granted two months to make alternative banking arrangements, but given no reason for why his 20-year relationship with the bank was being terminated.
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Late last week, PHH announced that it recently received notice from HSBC Bank that it plans to sell the mortgage servicing rights on approximately 139,000 mortgage loans currently subserviced by PHH to an unknown buyer.
And worse for PHH, HSBC informed the company that the purchaser of the mortgage servicing rights does not plan to continue using PHH as a subservicer.
According to a report from Buffalo Business First, HSBC’s decision will lead to PHH laying off a number of employees from its Amherst location.
Buffalo Business First reported that the number of job cuts is currently unknown, but stated that the company has 300 employees currently at its Amherst location.
Law360, Los Angeles (August 26, 2016, 10:28 PM ET) — HSBC Card Services Inc. has agreed to pay $13 million to resolve a consolidated proposed class action accusing the company of unlawfully recording debt-collection calls without the consent of consumers, according to documents filed Friday in California federal court.
In three nearly identical putative class actions, consumers accuse HSBC of violating the California Invasion of Privacy Act by recording without permission phone conversations with California account holders discussing their HSBC credit card accounts. (Credit: AP) In asking U.S. District Judge James V. Selna to grant preliminary…
Posted in Uncategorized
It appears that PHH Corp. has a subservicing problem on its hands, as for the second time in four months, the company is about to lose a large portion of its mortgage subservicing portfolio.
PHH disclosed Thursday that it recently received notice from HSBC Bank that it plans to sell the mortgage servicing rights on approximately 139,000 mortgage loans currently subserviced by PHH Mortgage Corporation, a wholly-owned subsidiary of PHH, on behalf of HSBC.
In an 8-K filing with the Securities and Exchange Commission, PHH said that HSBC informed the company that the purchaser of the mortgage servicing rights does not plan to continue using PHH as a subservicer.
PHH said that the portfolio of loans it’s set to lose subservicing rights for represents approximately 29% of the company’s total subservicing portfolio units, as of June 30, 2016.